I started with a brother PE-150 that I bought used on eBay for $300. to that I added the cost of the ultimate box for downloading at $150 including shipping with a card for downloading. I used regular coats and clark sewing thread (which means I had to clean out my lint from the bobbin case FREQUENTLY) and tear away stabilizer on the bolt from Joann's. I did very well with that for quite a white, about 6 months, then bought some good robison anton thread and LOOOOVE using better thread. a few prewound bobbins- "nebs" are almost indespensible, too, as they run soo much smoother than the ones you wind yourself. and proper bobbin tension can fix SOO many problems and they last a good 3 times longer than one you wind on the machine yourself. a program like embird is also a great thing to have. Good for combining designs and changing things around, etc. I think it's about $60 but you can get a fully functioning free trial for 30 days. WHich is a good amount of time to raise the money to pay for it

SO, inexpensive? no... but you don't NEED embird and you don't NEED good thread (though honestly, you will certainly want it and will get MUCH better results with it) and you don't NEED prewound bobbins or expensive fancy stabilizer.
But if you want to do designs other than the one that come with the machine, you have to have the ultimate box (holds more designs than the alternatives) and the machine-a $450 investment, pretty much.
here is a site on ebay (not affiliated, just did a random search)
http://cgi.ebay.com/Brother-PE-170-D...QQcmdZViewItem for a machine for $319...
they aren't cheap but they sure are worth it!
Good luck on your search/decision.
I have the PC-6500, which is the lowest on the totem pole of 5x7 embroidery area machines. Its also a sewing machine. I love it.. but I still lust after the big machines that take floppy disks instead of the ultimate cards...

someday
